17-year-old Camavinga has enjoyed a breakthrough season at the French outfit, making 35 appearances in all competitions to help Rennes to third on the Ligue 1 table before the season was halted because of the Coronavirus pandemic.
Camavinga’s performances has seen him linked with a host of Europe’s big clubs including Real Madrid, who are looking to add the Angolan-born Frenchman to their midfield options.
Asked if the France Under-21 international has the quality to succeed at Madrid, Rennes boss Stephan told AS: "Yes, he has.
"In the medium term I see him in a structure of the highest level with demands of the highest level.
"He has the potential and all the qualities required to settle at a top club some day."
Stephan however believes Camavinga needs to enhance his development at Rennes before making the step up.
"I always give him advice to stay one more season at Rennes because it is his club of education," Stephan added.
"After a good season, you always have to confirm that quality leap and it would be easier for him to do it here.
"I think that he has one or two stages left before making the jump for a big club.
"There is a difference between being able to play a high-level season at your club of education and being able to play 60 games per campaign in a gigantic club every three days.
"He already makes a big difference, but he has a couple of steps to take to establish himself at a top club."